Currencies: The Dollar King soon to be dethroned

As anticipated by the financial community, the U.S. Federal Reserve raised its key rates by 25 basis points to 5.00%. However, this new turn of screw does not stop the king of the dollar, which has almost lost its crown. We had to wait for new tensions on the banking stocks front for it to regain its reputation a little. Before a probable new fall

Last week, the EURUSD managed to break out of its horizontal consolidation channel by breaking above the 1.0734 level, thereby raising the spectre of a bearish head-and-shoulders pattern. The recovery target is still 1.1012 or even 1.1250. For its part, the dollar index (DXY) has gently broken through 103.45, which suggests a return to the February lows of 100.80.

Commodity currencies remain under overall bearish pressure as evidenced by the 50, 100 and 200 day moving averages now resisting. The Aussie and Kiwi have grounded on their respective resistance zones at 0.6740/68 and 0.6303/40 from where a new bearish salvo is expected.

The British pound is struggling to fulfill the hopes placed in it. For the fourth month in a row, it is consolidating its advance from the fourth quarter of 2022, which had seen it rise from 1.0350 to 1.2419/45, resistance that we will watch for a resumption of the bullish momentum towards 1.3100/88.

On the scandies side, the USDSEK is approaching the lower bound of its horizontal channel at 10.16. Note that a break of this level should coincide with the GBP's 1.2419/45 and confirm the dollar's weakness towards the 9.53/41 level in sight. As for the USDNOK, it has made a small intraday foray below its first support at 10.44 but retains a bullish structure with an unchanged target at 10.88/11.00.